BoardroomDirect: Update on current board issues - March 2014

At a glance

The inaugural edition of PwC’s Audit Committee Excellence Series covers a company’s forward-looking guidance practices and the potential risks associated with analysts’ consensus estimates. It provides board-level perspectives regarding current trends as well as the advantages and disadvantages of providing guidance.

How does an audit committee “raise the bar” on its performance? The PwC Center for Board Governance is publishing the Audit Committee Excellence Series (ACES) to help address this question. The series provides practical and actionable insights, perspectives and ideas to help audit committees maximize committee performance. While targeted to directors serving on audit committees, it is also beneficial to others working with audit committees including CFOs, CAOs, general counsels, and internal auditors.

The inaugural edition addresses the company’s forward-looking guidance practices and the potential risks associated with analysts’ consensus estimates. It provides board-level perspectives regarding current trends, as well as the pros and cons of providing guidance. The release also suggests being alert to certain types of management behaviors that can be considered “gaming” reported results to meet consensus estimates.

The next edition will focus on financial reporting oversight. It will discuss the importance of press releases covering preliminary results, considerations for audit committees before releasing results, and tips for reviewing actual filings. The third edition will cover the role of internal audit and will help audit committees oversee and maximize the value of this important resource.

About the author

About the author

The PwC center for board governance provides numerous offerings that enable board members to more effectively meet the challenges of their critical role. The offerings include leading-edge governance practices, insightful and timely thought leadership, and forums for directors to discuss contemporary issues.
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